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Exhibit 99.3
2020 Annual Business Report
Table of Contents
|
|
1. |
Business Overview |
|
|
(1) |
Business Results and Financial Statements for the Past Three Fiscal Years (2018 – 2020) |
|
|
2. |
Company Overview |
|
|
(1) |
Registered Purpose of the Company |
|
|
(2) |
Description of Primary Business |
|
|
(3) |
Problems Confronting the Company |
|
|
(4) |
Business Offices and Game Development Facilities |
|
|
(5) |
Stock |
|
|
(6) |
Debenture |
|
|
(7) |
Major Share holders |
|
|
(8) |
Investment in Other Companies |
|
|
(9) |
Directors Holding Concurrent Positions |
|
|
(10) |
Material Transactions with Related Parties |
|
|
(11) |
Significant Creditors |
|
|
(12) |
Employees |
|
|
(13) |
Directors and Auditors |
|
|
(14) |
Material Events after the End of Fiscal Year 2020 |
|
|
3. |
Consolidated Financial Statements as of and for the fiscal years ended December 31, 2020 and 2019 |
|
|
(1) |
Consolidated Financial Positions |
|
|
(2) |
Consolidated Comprehensive Income |
|
|
(3) |
Consolidated Statements of Changes in Equity |
|
|
(4) |
Consolidated Statements of Cash Flows |
|
|
4. |
Separate Financial Statements as of and for the fiscal years ended December 31, 2020 and 2019 |
|
|
(1) |
Financial Positions |
|
|
(2) |
Comprehensive Income |
|
|
(3) |
Statements of Appropriation of Retained Earnings |
|
|
(4) |
Statements of Changes in Equity |
|
|
(5) |
Statements of Cash Flows |
1. Business Overview
|
|
(1) |
Business Results and Financial Statements for the Past Three Fiscal Years (2018 – 2020) |
|
|
|
|
|
|
|
(In thousands of Korean Won) |
|
|||||
|
Category |
|
2020 |
|
|
2019 |
|
|
2018 |
|
|||
|
Current assets |
|
|
164,602,523 |
|
|
|
100,881,643 |
|
|
|
83,385,874 |
|
|
• Quick assets |
|
|
164,602,523 |
|
|
|
100,881,643 |
|
|
|
83,385,874 |
|
|
Non-current assets |
|
|
28,537,796 |
|
|
|
26,687,368 |
|
|
|
22,618,902 |
|
|
• Investment asset |
|
|
14,958,641 |
|
|
|
12,393,218 |
|
|
|
9,464,638 |
|
|
• Property and Equipment, net |
|
|
3,176,858 |
|
|
|
2,855,143 |
|
|
|
882,089 |
|
|
• Intangible asset |
|
|
2,663,857 |
|
|
|
2,025,543 |
|
|
|
1,572,714 |
|
|
• Other non-current asset |
|
|
7,738,440 |
|
|
|
9,413,464 |
|
|
|
10,699,461 |
|
|
Total assets |
|
|
193,140,319 |
|
|
|
127,569,011 |
|
|
|
106,004,776 |
|
|
Current liabilities |
|
|
48,824,376 |
|
|
|
23,916,264 |
|
|
|
24,548,267 |
|
|
Non-current liabilities |
|
|
3,370,754 |
|
|
|
2,151,426 |
|
|
|
3,668,390 |
|
|
Total liabilities |
|
|
52,195,130 |
|
|
|
26,067,690 |
|
|
|
28,216,657 |
|
|
Share capital |
|
|
3,474,450 |
|
|
|
3,474,450 |
|
|
|
3,474,450 |
|
|
Capital surplus |
|
|
27,482,683 |
|
|
|
27,482,683 |
|
|
|
27,482,683 |
|
|
Other components of equity |
|
|
929 |
|
|
|
(26,017 |
) |
|
|
(270,936 |
) |
|
Retained earnings |
|
|
109,987,127 |
|
|
|
70,570,205 |
|
|
|
47,101,922 |
|
|
Total equity |
|
|
140,945,189 |
|
|
|
101,501,321 |
|
|
|
77,788,119 |
|
|
Revenues |
|
|
228,996,069 |
|
|
|
133,151,813 |
|
|
|
198,697,511 |
|
|
Operating income |
|
|
56,675,048 |
|
|
|
34,546,553 |
|
|
|
40,450,700 |
|
|
Income before income tax |
|
|
55,050,476 |
|
|
|
35,304,130 |
|
|
|
35,139,350 |
|
|
Net income |
|
|
39,416,922 |
|
|
|
23,468,283 |
|
|
|
32,677,145 |
|
2. Company Overview
|
|
(1) |
Registered Purpose of the Company |
|
|
1) |
Software consulting, development and supply |
|
|
2) |
Development and sales of software and CD |
|
|
3) |
Information-technology-related software development |
|
|
4) |
Production, development, distribution, sales and consulting of digital contents, including game software, as well as corresponding licensing |
|
|
5) |
Online network game services |
|
|
6) |
Applied package-related software development |
|
|
7) |
Production and sales of computer programs |
|
|
8) |
Import and export of software |
|
|
9) |
E-commerce |
|
|
10) |
Character development business |
|
|
11) |
Animation business |
|
|
12) |
Real estate leasing |
|
|
13) |
Service-area restaurant business |
|
|
14) |
Media-related business |
|
|
15) |
Printing and publication |
|
|
16) |
Record & video production and distribution |
|
|
17) |
Any other businesses incidental to the above businesses |
|
|
(2) |
Description of Primary Business |
Gravity Co., Ltd. (the “Company”) is the developer of Ragnarok Online, an MMORPG, which was launched in August 2002 and is commercially offered in 93 markets worldwide, including Korea, Japan, Taiwan, Thailand, Southeast Asia, the United States and Europe as of December 31, 2020.
Having strong global network and success from Ragnarok Online, the Company is expanding its business areas from online game development and publishing to cultural contents business based on various platforms, such as development of games for smartphones, console and IPTV, and animation and game character merchandising.
In addition, the Company has subsidiaries, such as Gravity NeoCyon, Inc. in Korea, Gravity Interactive, Inc. in the United States, Gravity Communications Co., Ltd in Taiwan. In order to strengthen its presence in the overseas markets, the company was established subsidiaries in Bangkok, Thailand on January 29, in Jakarta, Indonesia on February 5, and in Tokyo, Japan on July 1, 2019.
|
|
(3) |
Problems Confronting the Company |
Since the Company operates in a highly competitive industry, the Company is making every effort to enhance its development capacity and to maintain and increase its market share in overseas markets to preserve its competitive advantage.
The Company is in need of diversified revenue structure, continuous global market expansion and new business initiatives for sustainable revenue growth. The Company is doing its best diversely to expand new markets, to publish mobile games, to develop mobile games and to do IP licensing business.
|
|
(4) |
Business Offices and Game Development Facilities |
|
Classification |
|
Location |
|
Head Office |
|
(Nuritkum Square R&D Tower) 15F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea |
|
Game Development Facilities |
|
(Nuritkum Square R&D Tower) 15F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea |
|
|
(5) |
Stock |
|
|
1) |
Total number of shares |
|
|
|
|
|
(As of December 31, 2020) |
|
Total number of shares authorized |
|
Total number of shares issued |
|
Total number of shares unissued |
|
40,000,000 shares |
|
6,948,900 shares |
|
33,051,100 shares |
|
|
2) |
Type of Stock issued (Par value per share: KRW 500) |
(As of December 31, 2020)
|
Type |
|
Number of shares |
|
Total par value |
|
% |
|
|
Registered common stock |
|
6,948,900 shares |
|
KRW 3,474,450,000 |
|
100% |
|
|
|
(6) |
Debenture: None. |
|
|
(7) |
Major Shareholders |
|
|
|
|
|
|
|
(As of December 31, 2020) |
|
|||||
|
Shareholder |
|
Shares owned |
|
|
% |
|
|
Transaction with the Company |
|
|||
|
GungHo Online Entertainment, Inc. |
|
|
4,121,737 |
|
|
|
59.31 |
|
|
|
— |
|
|
Others |
|
|
2,827,163 |
|
|
|
40.69 |
|
|
|
— |
|
|
Total |
|
|
6,948,900 |
|
|
|
100.00 |
|
|
|
— |
|
|
|
(8) |
Investment in Other Companies |
|
|
|
|
|
|
|
|
|
(As of December 31, 2020) |
||||||||
|
Companies |
|
Relationship with the Company |
||||||||||||||
|
Name |
|
Location |
|
Common Stock |
|
Main business |
|
Shares owned |
|
|
% |
|
|
Relationship |
||
|
Gravity Interactive, Inc. |
|
California, USA |
|
USD 14,540,000 |
|
Gaming Service |
|
|
290,000 |
|
|
|
100.00 |
% |
|
Subsidiary |
|
Gravity NeoCyon, Inc.(*1) |
|
Seoul, Korea |
|
KRW 7,963,990,000 |
|
Mobile game development |
|
|
1,585,298 |
|
|
|
99.53 |
% |
|
Subsidiary |
|
Gravity Communications Co., Ltd. |
|
Taipei. Taiwan |
|
NTD 155,100,000 |
|
Online and Mobile Game Service |
|
|
15,510,000 |
|
|
|
100.00 |
% |
|
Subsidiary |
|
Gravity Entertainment Corp.(*2) |
|
Tokyo, Japan |
|
0 |
|
Animation making/service |
|
|
0 |
|
|
|
0.00 |
% |
|
Subsidiary |
|
PT Gravity Game Link(*3) |
|
Jakarta, Indonesia |
|
IDR 28,814,000,000 |
|
Online and Mobile Game Service |
|
|
2,016,980 |
|
|
|
70.00 |
% |
|
Subsidiary |
|
Gravity Game Tech Co., Ltd. |
|
Bankok, Thailand |
|
THB 88,049,940 |
|
Online and Mobile Game Service |
|
|
8,804,994 |
|
|
|
100.00 |
% |
|
Subsidiary |
|
Gravity Game Arise Co., Ltd. |
|
Bangkok, Thailand |
|
JPY 50,000,000 |
|
Online and Mobile Game Service |
|
|
5,000 |
|
|
|
100.00 |
% |
|
Subsidiary |
(*1) During the year ended December 31, 2020, the Parent Company participated in paid-in capital increase of Gravity NeoCyon, Inc. which resulted in increase of ownership interest of the Parent Company.
(*2) Gravity Entertainment Corp. was liquidated during 2020 and has been excluded from subsidiary since then.
(*3) Gravity participated to capital increase of PT.Gravity Game Link with Won 853,183 thousand.
|
|
(9) |
Directors Holding Concurrent Positions |
|
|
|
Company |
|
|||||
|
Name |
|
Name |
|
Position |
|
Responsibility |
|
|
|
Hyun Chul Park |
|
Gravity Co., Ltd. |
|
CEO |
|
Overall management |
|
|
|
|
|
Gravity NeoCyon, Inc. |
|
Executive Director |
|
Chief Operating Officer |
|
|
|
|
|
Gravity Communications Co., Ltd. |
|
Executive Director |
|
|
— |
|
|
|
|
Gravity Interactive, Inc. |
|
Executive Director |
|
|
— |
|
|
|
|
Gravity Game Arise Co., Ltd. |
|
Executive Director |
|
|
— |
|
|
Yoshinori Kitamura |
|
Gravity Co., Ltd. |
|
Executive Director |
|
Chief Operating Officer |
|
|
|
|
|
Gravity Interactive, Inc. |
|
CEO |
|
Overall management |
|
|
|
|
|
Gravity NeoCyon, Inc. |
|
CEO |
|
Overall management |
|
|
|
|
|
Gravity Communications Co., Ltd. |
|
CEO |
|
Overall management |
|
|
|
|
|
PT Gravity Game Link |
|
CEO |
|
Overall management |
|
|
|
|
|
Gravity Game Tech Co., Ltd. |
|
CEO |
|
Overall management |
|
|
|
|
|
Gravity Game Arise Co., Ltd. |
|
CEO |
|
Overall management |
|
|
|
|
(10) |
Material Transactions with Related Parties |
|
|
1) |
Sales and purchases |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of Korean Won) |
|
|||||
|
|
|
|
|
2020 |
|
|
2019 |
|
||||||||||
|
Nature |
|
Related companies |
|
Sales |
|
|
Purchases |
|
|
Sales |
|
|
Purchase |
|
||||
|
Parent company |
|
GungHo Online Entertainment, Inc. |
|
|
20,970,472 |
|
|
|
211,348 |
|
|
|
26,477,425 |
|
|
|
56,899 |
|
|
Subsidiaries |
|
Gravity Interactive, Inc. |
|
|
22,952,182 |
|
|
|
859 |
|
|
|
38,508,020 |
|
|
|
2,791 |
|
|
|
|
Gravity Entertainment Corp. |
|
- |
|
|
- |
|
|
- |
|
|
|
251,102 |
|
|||
|
|
|
Gravity NeoCyon, Inc. |
|
|
301,672 |
|
|
|
7,504,107 |
|
|
|
517,314 |
|
|
|
7,018,159 |
|
|
|
|
Gravity Communications Co., Ltd. |
|
|
7,779,917 |
|
|
|
9,855,435 |
|
|
5,570,889 |
|
|
|
2,245,589 |
|
|
|
|
|
PT Gravity Game Link |
|
|
1,535,466 |
|
|
|
28,007 |
|
|
|
156,995 |
|
|
|
34,853 |
|
|
|
|
Gravity Game Tech Co., Ltd. |
|
|
9,662,919 |
|
|
|
54 |
|
|
- |
|
|
|
360 |
|
|
|
|
|
Gravity Game Arise Co., Ltd. |
|
- |
|
|
|
2,478,752 |
|
|
- |
|
|
|
797,955 |
|
||
|
|
|
Total |
|
63,202,628 |
|
|
|
20,078,562 |
|
|
|
71,230,643 |
|
|
10,407,708 |
|
||
|
|
2) |
Receivables and Payables |
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of Korean Won) |
|
||||||
|
|
|
|
|
2020 |
|
|
2019 |
|
||||||||||
|
Nature |
|
Related companies |
|
Receivables |
|
|
Payables |
|
|
Receivables |
|
|
Payables |
|
||||
|
Parent company |
|
GungHo Online Entertainment, Inc. |
|
2,449,506 |
|
|
|
4,924 |
|
|
|
2,553,022 |
|
|
|
73,678 |
|
|
|
Subsidiaries |
|
Gravity Interactive, Inc. |
|
|
3,845,373 |
|
|
- |
|
|
|
4,804,814 |
|
|
|
365 |
|
|
|
|
|
Gravity Entertainment Corp. |
|
- |
|
|
- |
|
|
|
8,325 |
|
|
- |
|
|||
|
|
|
Gravity NeoCyon, Inc. |
|
349,634 |
|
|
|
862,702 |
|
|
|
1,166,940 |
|
|
|
850,412 |
|
|
|
|
|
Gravity Communications Co., Ltd. |
|
1,021,437 |
|
|
|
1,296,845 |
|
|
|
1,547,814 |
|
|
|
2,120,357 |
|
|
|
|
|
PT Gravity Game Link |
|
442,927 |
|
|
|
14,899 |
|
|
|
22,504 |
|
|
|
215,884 |
|
|
|
|
|
Gravity Game Tech Co., Ltd. |
|
966,402 |
|
|
- |
|
|
|
451,879 |
|
|
|
360 |
|
||
|
|
|
Gravity Game Arise Co., Ltd. |
|
922,360 |
|
|
|
1,461,626 |
|
|
|
889,785 |
|
|
228,929 |
|
||
|
|
|
Total |
|
9,997,639 |
|
|
3,640,996 |
|
|
|
11,445,083 |
|
|
|
3,489,985 |
|
||
|
|
(11) |
Significant Creditors: The Company had no significant creditors as of December 31, 2020. |
|
|
(12) |
Employees |
|
|
|
|
|
|
|
|
|
(As of December 31, 2020) |
||
|
Category |
|
Directors & Officers |
|
Developers |
|
Marketing/Operating |
|
Finance/Administration |
|
Total |
|
Employees |
|
10 |
|
164 |
|
65 |
|
40 |
|
279 |
|
|
(13) |
Directors and Auditors |
(As of December 31, 2020)
|
Name |
|
Position |
|
Main work |
|
|
Transaction with the Company |
|
||
|
Hyun Chul Park |
|
CEO |
|
Chief Executive Officer |
|
|
|
— |
|
|
|
Yoshinori Kitamura |
|
Executive Director |
|
Chief Operating Officer |
|
|
|
— |
|
|
|
Kazuki Morishita |
|
Executive Director |
|
|
— |
|
|
|
— |
|
|
Kazuya Sakai |
|
Executive Director |
|
|
— |
|
|
|
— |
|
|
Jung Yoo |
|
Independent Director |
|
Member of audit committee |
|
|
|
— |
|
|
|
Yong Seon Kwon |
|
Independent Director |
|
Member of audit committee |
|
|
|
— |
|
|
|
Kee Woong Park |
|
Independent Director |
|
Member of audit committee |
|
|
|
— |
|
|
|
|
(14) |
Material Events after the end of fiscal year 2020: The company established a subsidiary in Singapore on January 4, 2021. |
3. Consolidated Financial Statements as of and for the fiscal year ended December 31, 2020 and December 31, 2019
|
|
(1) |
Consolidated Statements of Financial Position |
|
GRAVITY CO., LTD. |
|
(In thousands of Korean Won) |
|
|||||||||||||
|
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
||||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
246,585,717 |
|
|
|
|
|
|
|
155,863,353 |
|
|
Cash and cash equivalents |
|
|
110,632,482 |
|
|
|
|
|
|
|
79,427,979 |
|
|
|
|
|
|
Short-term financial instruments |
|
|
71,000,000 |
|
|
|
|
|
|
|
39,500,000 |
|
|
|
|
|
|
Accounts receivable, net |
|
|
59,761,256 |
|
|
|
|
|
|
|
32,253,496 |
|
|
|
|
|
|
Other receivable, net |
|
|
8,333 |
|
|
|
|
|
|
|
56,177 |
|
|
|
|
|
|
Prepaid expenses |
|
|
2,237,708 |
|
|
|
|
|
|
|
1,962,421 |
|
|
|
|
|
|
Other current financial assets |
|
|
817,825 |
|
|
|
|
|
|
|
232,676 |
|
|
|
|
|
|
Other current assets |
|
|
2,128,113 |
|
|
|
|
|
|
|
2,430,604 |
|
|
|
|
|
|
Non-current Assets |
|
|
|
|
|
|
18,786,651 |
|
|
|
|
|
|
|
19,561,992 |
|
|
Property and equipment, net |
|
|
7,695,046 |
|
|
|
|
|
|
|
6,663,444 |
|
|
|
|
|
|
Intangible assets, net |
|
|
3,362,879 |
|
|
|
|
|
|
|
1,717,060 |
|
|
|
|
|
|
Other non-current financial assets |
|
|
1,323,865 |
|
|
|
|
|
|
|
1,769,840 |
|
|
|
|
|
|
Other non-current assets |
|
|
2,814,792 |
|
|
|
|
|
|
|
1,744,551 |
|
|
|
|
|
|
Deferred tax assets |
|
|
3,590,069 |
|
|
|
|
|
|
|
7,667,097 |
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
265,372,368 |
|
|
|
|
|
|
|
175,425,345 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
82,720,222 |
|
|
|
|
|
|
|
55,787,148 |
|
|
Account payables |
|
|
52,687,616 |
|
|
|
|
|
|
|
37,496,038 |
|
|
|
|
|
|
Deferred revenue |
|
|
13,692,283 |
|
|
|
|
|
|
|
10,747,710 |
|
|
|
|
|
|
Withholdings |
|
|
2,851,636 |
|
|
|
|
|
|
|
1,763,653 |
|
|
|
|
|
|
Accrued expenses |
|
|
1,364,753 |
|
|
|
|
|
|
|
1,174,924 |
|
|
|
|
|
|
Income tax payable |
|
|
9,469,833 |
|
|
|
|
|
|
|
2,618,245 |
|
|
|
|
|
|
Other current liabilities |
|
|
2,654,101 |
|
|
|
|
|
|
|
1,986,578 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
5,304,130 |
|
|
|
|
|
|
|
3,872,107 |
|
|
Long-term account payables |
|
|
1,402,466 |
|
|
|
|
|
|
|
192,782 |
|
|
|
|
|
|
Long-term deferred revenue |
|
|
101,015 |
|
|
|
|
|
|
|
98,226 |
|
|
|
|
|
|
Other non-current liabilities |
|
|
3,800,649 |
|
|
|
|
|
|
|
3,576,384 |
|
|
|
|
|
|
Deferred tax liabilities |
|
- |
|
|
|
|
|
|
|
4,715 |
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
|
88,024,352 |
|
|
|
|
|
|
|
59,659,255 |
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to owners of the Parent Company |
|
|
|
|
|
|
176,910,875 |
|
|
|
|
|
|
|
115,544,739 |
|
|
Share capital |
|
|
|
|
|
|
3,474,450 |
|
|
|
|
|
|
|
3,474,450 |
|
|
Common shares |
|
|
3,474,450 |
|
|
|
|
|
|
|
3,474,450 |
|
|
|
|
|
|
Capital surplus |
|
|
|
|
|
|
27,109,803 |
|
|
|
|
|
|
|
27,127,684 |
|
|
Other components of equity |
|
|
|
|
|
|
(1,044,533 |
) |
|
|
|
|
|
|
274,538 |
|
|
Retained earnings |
|
|
|
|
|
|
147,371,155 |
|
|
|
|
|
|
|
84,668,067 |
|
|
Non-controlling interest |
|
|
|
|
|
|
437,141 |
|
|
|
|
|
|
|
221,351 |
|
|
Total equity |
|
|
|
|
|
|
177,348,016 |
|
|
|
|
|
|
|
115,766,090 |
|
|
Total liabilities and equity |
|
|
|
|
|
|
265,372,368 |
|
|
|
|
|
|
|
175,425,345 |
|
|
|
(2) |
Consolidated Statements of Comprehensive Income |
|
GRAVITY CO., LTD. |
|
(In thousands of Korean Won) |
|
|||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||
|
Revenues |
|
|
|
|
|
|
405,953,021 |
|
|
|
|
|
|
|
360,967,098 |
|
|
Online games |
|
|
89,545,060 |
|
|
|
|
|
|
|
42,321,437 |
|
|
|
|
|
|
Mobile games |
|
|
298,323,908 |
|
|
|
|
|
|
|
301,903,506 |
|
|
|
|
|
|
Other revenue |
|
|
18,084,053 |
|
|
|
|
|
|
|
16,742,155 |
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
239,044,923 |
|
|
|
|
|
|
|
265,788,109 |
|
|
Gross profit |
|
|
|
|
|
|
166,908,098 |
|
|
|
|
|
|
|
95,178,989 |
|
|
Selling and administrative expenses |
|
|
|
|
|
|
77,433,905 |
|
|
|
|
|
|
|
46,375,930 |
|
|
Operating Profit |
|
|
|
|
|
|
89,474,193 |
|
|
|
|
|
|
|
48,803,059 |
|
|
Non-operating income and expenses |
|
|
|
|
|
|
(1,463,083 |
) |
|
|
|
|
|
|
2,453,444 |
|
|
Financial income |
|
|
1,265,740 |
|
|
|
|
|
|
|
2,074,700 |
|
|
|
|
|
|
Financial costs |
|
|
(637,083 |
) |
|
|
|
|
|
|
(408,513 |
) |
|
|
|
|
|
Other non-operating income |
|
|
2,867,922 |
|
|
|
|
|
|
|
2,465,615 |
|
|
|
|
|
|
Other non-operating expenses |
|
|
(4,959,662 |
) |
|
|
|
|
|
|
(1,678,358 |
) |
|
|
|
|
|
Profit before income tax |
|
|
|
|
|
|
88,011,110 |
|
|
|
|
|
|
|
51,256,503 |
|
|
Income tax expense |
|
|
|
|
|
|
25,455,435 |
|
|
|
|
|
|
|
11,526,299 |
|
|
Profit for the year |
|
|
|
|
|
|
62,555,675 |
|
|
|
|
|
|
|
39,730,204 |
|
|
Owners of the Parent Company |
|
|
62,703,088 |
|
|
|
|
|
|
|
39,875,981 |
|
|
|
|
|
|
Non-controlling interests |
|
|
(147,413 |
) |
|
|
|
|
|
|
(145,777 |
) |
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
(1,319,071 |
) |
|
|
|
|
|
|
136,105 |
|
|
Items that may be subsequently reclassified to income or loss |
|
|
(1,319,071 |
) |
|
|
|
|
|
|
136,105 |
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(1,319,071 |
) |
|
|
|
|
|
|
136,105 |
|
|
|
|
|
|
Total comprehensive income for the year |
|
|
|
|
|
|
61,236,604 |
|
|
|
|
|
|
|
39,866,309 |
|
|
Owners of the Parent Company |
|
|
61,384,017 |
|
|
|
|
|
|
|
40,012,086 |
|
|
|
|
|
|
Non-controlling interests |
|
|
(147,413 |
) |
|
|
|
|
|
|
(145,777 |
) |
|
|
|
|
|
Earnings per share attributable to the equity holders of the Parent Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
|
|
|
9,023 |
|
|
|
|
|
|
|
5,738 |
|
|
Diluted earnings per share |
|
|
|
|
|
|
9,023 |
|
|
|
|
|
|
|
5,738 |
|
|
|
(3) |
Consolidated Statements of Changes in Equity |
|
GRAVITY CO., LTD. |
|
(In thousands of Korean Won) |
|
|||||||||||||||||||||||||
|
|
|
Share capital |
|
|
Capital Surplus |
|
|
Other components of equity |
|
|
Retained Earnings |
|
|
Total |
|
|
Non- controlling interest |
|
|
Total Equity |
|
|||||||
|
Balance at January 1, 2019 |
|
|
3,474,450 |
|
|
|
27,140,255 |
|
|
|
138,433 |
|
|
|
45,404,608 |
|
|
|
76,157,746 |
|
|
|
(605,961 |
) |
|
|
75,551,785 |
|
|
Profit(loss) for the year |
|
- |
|
|
- |
|
|
- |
|
|
|
39,875,981 |
|
|
|
39,875,981 |
|
|
|
(145,777 |
) |
|
|
39,730,204 |
|
|||
|
Equity transaction |
|
- |
|
|
|
(12,571 |
) |
|
- |
|
|
- |
|
|
|
(12,571 |
) |
|
|
1,401 |
|
|
|
(11,170 |
) |
|||
|
Acquisition of subsidiaries, etc. |
|
- |
|
|
- |
|
|
- |
|
|
|
(612,522 |
) |
|
|
(612,522 |
) |
|
|
971,688 |
|
|
|
359,166 |
|
|||
|
Foreign currency translation adjustments |
|
- |
|
|
- |
|
|
|
136,105 |
|
|
- |
|
|
|
136,105 |
|
|
- |
|
|
|
136,105 |
|
||||
|
Balance at December 31, 2019 |
|
|
3,474,450 |
|
|
|
27,127,684 |
|
|
|
274,538 |
|
|
|
84,668,067 |
|
|
|
115,544,739 |
|
|
|
221,351 |
|
|
|
115,766,090 |
|
|
Balance at January 1, 2020 |
|
|
3,474,450 |
|
|
|
27,127,684 |
|
|
|
274,538 |
|
|
|
84,668,067 |
|
|
|
115,544,739 |
|
|
|
221,351 |
|
|
|
115,766,090 |
|
|
Profit(loss) for the year |
|
- |
|
|
- |
|
|
- |
|
|
|
62,703,088 |
|
|
|
62,703,088 |
|
|
|
(147,413 |
) |
|
|
62,555,675 |
|
|||
|
Equity transaction |
|
- |
|
|
|
(17,881 |
) |
|
- |
|
|
- |
|
|
|
(17,881 |
) |
|
|
1,227 |
|
|
|
(16,654 |
) |
|||
|
Acquisition of subsidiaries, etc. |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
361,976 |
|
|
|
361,976 |
|
|||||
|
Foreign currency translation adjustments |
|
- |
|
|
- |
|
|
|
(1,319,071 |
) |
|
- |
|
|
|
(1,319,071 |
) |
|
- |
|
|
|
(1,319,071 |
) |
||||
|
Balance at December 31, 2020 |
|
|
3,474,450 |
|
|
|
27,109,803 |
|
|
|
(1,044,533 |
) |
|
|
147,371,155 |
|
|
|
176,910,875 |
|
|
|
437,141 |
|
|
|
177,348,016 |
|
|
|
(4) |
Consolidated Statements of Cash Flows |
|
GRAVITY CO., LTD. |
|
(In thousands of Korean Won) |
|
|||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||
|
Cash flows from operating activities |
|
|
|
|
|
|
69,856,903 |
|
|
|
|
|
|
|
26,371,282 |
|
|
Profit for the year |
|
|
62,555,675 |
|
|
|
|
|
|
|
39,730,204 |
|
|
|
|
|
|
Adjustments |
|
|
32,132,238 |
|
|
|
|
|
|
|
14,703,135 |
|
|
|
|
|
|
Changes in operating assets and liabilities |
|
|
(12,952,425 |
) |
|
|
|
|
|
|
(17,212,867 |
) |
|
|
|
|
|
Interest received |
|
|
1,122,471 |
|
|
|
|
|
|
|
1,605,200 |
|
|
|
|
|
|
Interest paid |
|
|
(185,742 |
) |
|
|
|
|
|
|
(277,454 |
) |
|
|
|
|
|
Income tax paid |
|
|
(12,815,314 |
) |
|
|
|
|
|
|
(12,176,936 |
) |
|
|
|
|
|
Cash Flows from investing activities |
|
|
|
|
|
|
(36,049,464 |
) |
|
|
|
|
|
|
(32,525,784 |
) |
|
Proceeds from disposal of property and equipment |
|
|
3,039 |
|
|
|
|
|
|
|
71,228 |
|
|
|
|
|
|
Proceeds from disposal of other intangible assets |
|
- |
|
|
|
|
|
|
|
20,215 |
|
|
|
|
|
|
|
Decrease in other non-current financial assets |
|
|
22,479 |
|
|
|
|
|
|
|
42,768 |
|
|
|
|
|
|
Increase in short-term financial instruments |
|
|
(31,500,000 |
) |
|
|
|
|
|
|
(30,000,000 |
) |
|
|
|
|
|
Purchase of property and equipment |
|
|
(1,071,379 |
) |
|
|
|
|
|
|
(982,899 |
) |
|
|
|
|
|
Purchase of other intangible assets |
|
|
(2,624,540 |
) |
|
|
|
|
|
|
(1,359,971 |
) |
|
|
|
|
|
Increase in other non-current financial assets |
|
|
(879,063 |
) |
|
|
|
|
|
|
(317,125 |
) |
|
|
|
|
|
Cash Flows from Financing Activities |
|
|
|
|
|
|
(2,547,245 |
) |
|
|
|
|
|
|
(1,686,075 |
) |
|
Proceeds from capital contribution from non-controlling interests |
|
|
361,976 |
|
|
|
|
|
|
|
359,166 |
|
|
|
|
|
|
Payment of share issuance cost |
|
|
(16,654 |
) |
|
|
|
|
|
|
(11,170 |
) |
|
|
|
|
|
Repayment of lease liabilities |
|
|
(2,892,567 |
) |
|
|
|
|
|
|
(2,034,071 |
) |
|
|
|
|
|
Effects of exchange rate changes on cash and cash equivalents |
|
|
|
|
|
|
(55,691 |
) |
|
|
|
|
|
|
1,217,818 |
|
|
Net increase in cash and cash equivalents |
|
|
|
|
|
|
31,204,503 |
|
|
|
|
|
|
|
(6,622,759 |
) |
|
Cash and cash equivalents at beginning of the year |
|
|
|
|
|
|
79,427,979 |
|
|
|
|
|
|
|
86,050,738 |
|
|
Cash and cash equivalents at end of the year in the statements of financial position |
|
|
|
|
|
|
110,632,482 |
|
|
|
|
|
|
|
79,427,979 |
|
4. Separate Financial Statements as of and for the fiscal year ended December 31, 2020 and December 31, 2019
|
|
(1) |
Statements of Financial Position |
|
GRAVITY CO., LTD. |
|
(In thousands of Korean Won) |
|
|||||||||||||
|
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
||||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
164,602,523 |
|
|
|
|
|
|
|
100,881,643 |
|
|
Cash and cash equivalents |
|
|
45,956,245 |
|
|
|
|
|
|
|
40,088,250 |
|
|
|
|
|
|
Short-term financial instruments |
|
|
71,000,000 |
|
|
|
|
|
|
|
39,500,000 |
|
|
|
|
|
|
Accounts receivable, net |
|
|
44,353,327 |
|
|
|
|
|
|
|
17,977,026 |
|
|
|
|
|
|
Other receivable, net |
|
|
478,428 |
|
|
|
|
|
|
|
1,162,439 |
|
|
|
|
|
|
Prepaid expenses |
|
|
1,293,345 |
|
|
|
|
|
|
|
779,693 |
|
|
|
|
|
|
Other current financial assets |
|
|
841,092 |
|
|
|
|
|
|
|
334,415 |
|
|
|
|
|
|
Other current assets |
|
|
680,086 |
|
|
|
|
|
|
|
1,039,820 |
|
|
|
|
|
|
Non-current Assets |
|
|
|
|
|
|
28,537,796 |
|
|
|
|
|
|
|
26,687,368 |
|
|
Investments in subsidiaries |
|
|
14,958,641 |
|
|
|
|
|
|
|
12,393,218 |
|
|
|
|
|
|
Property and equipment, net |
|
|
3,176,858 |
|
|
|
|
|
|
|
2,855,143 |
|
|
|
|
|
|
Intangible assets, net |
|
|
2,663,857 |
|
|
|
|
|
|
|
2,025,543 |
|
|
|
|
|
|
Other non-current financial assets |
|
|
1,128,475 |
|
|
|
|
|
|
|
1,702,234 |
|
|
|
|
|
|
Other non-current assets |
|
|
1,891,247 |
|
|
|
|
|
|
|
1,871,208 |
|
|
|
|
|
|
Deferred tax assets |
|
|
4,718,718 |
|
|
|
|
|
|
|
5,840,022 |
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
193,140,319 |
|
|
|
|
|
|
|
127,569,011 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
48,824,376 |
|
|
|
|
|
|
|
23,916,264 |
|
|
Accounts payables |
|
|
34,810,387 |
|
|
|
|
|
|
|
16,040,563 |
|
|
|
|
|
|
Deferred income |
|
|
4,680,655 |
|
|
|
|
|
|
|
4,199,370 |
|
|
|
|
|
|
Withholdings |
|
|
2,096,706 |
|
|
|
|
|
|
|
865,570 |
|
|
|
|
|
|
Accrued expenses |
|
|
610,004 |
|
|
|
|
|
|
|
566,094 |
|
|
|
|
|
|
Income tax payable |
|
|
4,998,566 |
|
|
|
|
|
|
|
1,210,020 |
|
|
|
|
|
|
Other current liabilities |
|
|
1,628,058 |
|
|
|
|
|
|
|
1,034,647 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
3,370,754 |
|
|
|
|
|
|
|
2,151,426 |
|
|
Long-term account payables |
|
|
1,402,466 |
|
|
|
|
|
|
|
129,150 |
|
|
|
|
|
|
Long-term deferred income |
|
|
133,936 |
|
|
|
|
|
|
|
98,226 |
|
|
|
|
|
|
Other non-current liabilities |
|
|
1,834,352 |
|
|
|
|
|
|
|
1,924,050 |
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
|
52,195,130 |
|
|
|
|
|
|
|
26,067,690 |
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital |
|
|
|
|
|
|
3,474,450 |
|
|
|
|
|
|
|
3,474,450 |
|
|
Common shares |
|
|
3,474,450 |
|
|
|
|
|
|
|
3,474,450 |
|
|
|
|
|
|
Capital surplus |
|
|
|
|
|
|
27,482,683 |
|
|
|
|
|
|
|
27,482,683 |
|
|
Other components of equity |
|
|
|
|
|
|
929 |
|
|
|
|
|
|
|
(26,017 |
) |
|
Retained earnings |
|
|
|
|
|
|
109,987,127 |
|
|
|
|
|
|
|
70,570,205 |
|
|
Total equity |
|
|
|
|
|
|
140,945,189 |
|
|
|
|
|
|
|
101,501,321 |
|
|
Total liabilities and equity |
|
|
|
|
|
|
193,140,319 |
|
|
|
|
|
|
|
127,569,011 |
|
|
|
(2) |
Statements of Comprehensive Income |
|
GRAVITY CO., LTD. |
|
(In thousands of Korean Won) |
|
|||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||
|
Revenues |
|
|
|
|
|
|
228,996,069 |
|
|
|
|
|
|
|
133,151,813 |
|
|
Online games |
|
|
37,917,065 |
|
|
|
|
|
|
|
25,374,718 |
|
|
|
|
|
|
Mobile games |
|
|
190,926,376 |
|
|
|
|
|
|
|
107,529,902 |
|
|
|
|
|
|
Other revenue |
|
|
152,628 |
|
|
|
|
|
|
|
247,193 |
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
119,227,125 |
|
|
|
|
|
|
|
65,242,309 |
|
|
Gross profit |
|
|
|
|
|
|
109,768,944 |
|
|
|
|
|
|
|
67,909,504 |
|
|
Selling and administrative expenses |
|
|
|
|
|
|
53,093,896 |
|
|
|
|
|
|
|
33,362,951 |
|
|
Operating Profit |
|
|
|
|
|
|
56,675,048 |
|
|
|
|
|
|
|
34,546,553 |
|
|
Non-operating income and expenses |
|
|
|
|
|
|
(1,624,572 |
) |
|
|
|
|
|
|
757,577 |
|
|
Financial income |
|
|
994,755 |
|
|
|
|
|
|
|
1,525,335 |
|
|
|
|
|
|
Financial costs |
|
|
(120,931 |
) |
|
|
|
|
|
|
(292,233 |
) |
|
|
|
|
|
Other non-operating income |
|
|
4,762,128 |
|
|
|
|
|
|
|
4,994,020 |
|
|
|
|
|
|
Other non-operating expenses |
|
|
(7,260,524 |
) |
|
|
|
|
|
|
(5,469,545 |
) |
|
|
|
|
|
Profit before income tax expense |
|
|
|
|
|
|
55,050,476 |
|
|
|
|
|
|
|
35,304,130 |
|
|
Income tax expense |
|
|
|
|
|
|
15,633,554 |
|
|
|
|
|
|
|
11,835,847 |
|
|
Profit for the year |
|
|
|
|
|
|
39,416,922 |
|
|
|
|
|
|
|
23,468,283 |
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
26,946 |
|
|
|
|
|
|
|
244,919 |
|
|
Items that may be subsequently reclassified to income or loss |
|
|
26,946 |
|
|
|
|
|
|
|
244,919 |
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
26,946 |
|
|
|
|
|
|
|
244,919 |
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
|
|
|
39,443,868 |
|
|
|
|
|
|
|
23,713,202 |
|
|
|
(3) |
Statements of Appropriation of Retained Earnings |
|
GRAVITY CO., LTD. |
|
(In thousands of Korean Won) |
|
|||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||
|
|
|
Confirmed disposition date: March 31, 2021 |
|
|
Confirmed appropriation date: March 31, 2020 |
|
||||||||||
|
Retained earnings before appropriation |
|
|
|
|
|
|
109,987,127 |
|
|
|
|
|
|
|
70,570,205 |
|
|
Unappropriated retained earnings carried over from prior year |
|
|
70,570,205 |
|
|
|
|
|
|
|
47,101,922 |
|
|
|
|
|
|
Profit for the year |
|
|
39,416,922 |
|
|
|
|
|
|
|
23,468,283 |
|
|
|
|
|
|
Appropriation of retained earnings |
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
||
|
Unappropriated retained earnings carried forwards to subsequent year |
|
|
|
|
|
109,987,127 |
|
|
|
|
|
|
|
70,570,205 |
|
|
|
|
(4) |
Statements of Changes in Equity |
|
GRAVITY CO., LTD. |
|
(In thousands of Korean Won) |
|
|||||||||||||||||
|
|
|
Share capital |
|
|
Capital Surplus |
|
|
Other components of equity |
|
|
Retained Earnings (Accumulated deficit) |
|
|
Total |
|
|||||
|
Balance at January 1, 2019 |
|
|
3,474,450 |
|
|
|
27,482,683 |
|
|
|
(270,936 |
) |
|
|
47,101,922 |
|
|
|
77,788,119 |
|
|
Profit for the year |
|
- |
|
|
- |
|
|
- |
|
|
|
23,468,283 |
|
|
|
23,468,283 |
|
|||
|
Foreign currency translation adjustments |
|
- |
|
|
- |
|
|
|
244,919 |
|
|
- |
|
|
|
244,919 |
|
|||
|
Balance at December 31, 2019 |
|
|
3,474,450 |
|
|
|
27,482,683 |
|
|
|
(26,017 |
) |
|
|
70,570,205 |
|
|
|
101,501,321 |
|
|
Balance at January 1, 2020 |
|
|
3,474,450 |
|
|
|
27,482,683 |
|
|
|
(26,017 |
) |
|
|
70,570,205 |
|
|
|
101,501,321 |
|
|
Profit for the year |
|
- |
|
|
- |
|
|
- |
|
|
|
39,416,922 |
|
|
|
39,416,922 |
|
|||
|
Foreign currency translation adjustments |
|
- |
|
|
- |
|
|
|
26,946 |
|
|
- |
|
|
|
26,946 |
|
|||
|
Balance at December 31, 2020 |
|
|
3,474,450 |
|
|
|
27,482,683 |
|
|
|
929 |
|
|
|
109,987,127 |
|
|
|
140,945,189 |
|
|
|
(5) |
Statements of Cash Flows |
|
GRAVITY CO., LTD. |
|
(In thousands of Korean Won) |
|
|||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||
|
Cash flows from operating activities |
|
|
|
|
|
|
43,998,181 |
|
|
|
|
|
|
|
32,545,923 |
|
|
Profit for the year |
|
|
39,416,922 |
|
|
|
|
|
|
|
23,468,283 |
|
|
|
|
|
|
Adjustments |
|
|
19,381,149 |
|
|
|
|
|
|
|
14,952,150 |
|
|
|
|
|
|
Changes in operating assets and liabilities |
|
|
(8,008,589 |
) |
|
|
|
|
|
|
1,133,672 |
|
|
|
|
|
|
Interest received |
|
|
998,281 |
|
|
|
|
|
|
|
1,043,667 |
|
|
|
|
|
|
Dividend received |
|
|
2,382,800 |
|
|
|
|
|
|
|
2,557,695 |
|
|
|
|
|
|
Interest paid |
|
|
(120,865 |
) |
|
|
|
|
|
|
(173,763 |
) |
|
|
|
|
|
Income tax paid |
|
|
(10,051,517 |
) |
|
|
|
|
|
|
(10,435,781 |
) |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
(36,633,521 |
) |
|
|
|
|
|
|
(37,836,682 |
) |
|
Decrease in other non-current financial assets |
|
|
6,391 |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
Disposal of property and equipment |
|
|
12,386,391 |
|
|
|
|
|
|
|
3,216 |
|
|
|
|
|
|
Acquisition of investments in subsidiaries |
|
|
(3,853,178 |
) |
|
|
|
|
|
|
(6,777,526 |
) |
|
|
|
|
|
Increase in short-term financial instruments |
|
|
(31,500,000 |
) |
|
|
|
|
|
|
(30,000,000 |
) |
|
|
|
|
|
Increase in other non-current financial assets |
|
|
(100 |
) |
|
|
|
|
|
|
(69,487 |
) |
|
|
|
|
|
Acquisition of property and equipment |
|
|
(158,284 |
) |
|
|
|
|
|
|
(153,753 |
) |
|
|
|
|
|
Acquisition of intangible assets |
|
|
(1,129,588 |
) |
|
|
|
|
|
|
(839,132 |
) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
(1,515,930 |
) |
|
|
|
|
|
|
(1,364,537 |
) |
|
Repayment of lease liabilities |
|
|
(1,515,930 |
) |
|
|
|
|
|
|
(1,364,537 |
) |
|
|
|
|
|
Effects of exchange rate changes on cash and cash equivalents |
|
|
|
|
|
|
19,265 |
|
|
|
|
|
|
|
144,673 |
|
|
Net increase in cash and cash equivalents |
|
|
|
|
|
|
5,867,995 |
|
|
|
|
|
|
|
(6,510,624 |
) |
|
Cash and cash equivalents at the beginning of the financial year |
|
|
|
|
|
|
40,088,250 |
|
|
|
|
|
|
|
46,598,874 |
|
|
Cash and cash equivalents at the end of the year in the statements of financial position |
|
|
|
|
|
|
45,956,245 |
|
|
|
|
|
|
|
40,088,250 |
|
